SKL’s new US$1M Kenya plant targets 22,000-Tonne horticulture packaging expansion

KENYA – Shri Krishana Overseas PLC has invested KES 132 million (US$1.0 million) in a new 22,000-tonne packaging facility in Kajiado County, Kenya, aiming to meet surging demand from the country’s horticulture export sector while navigating high debt servicing costs.

The ambitious expansion, situated on a 5-acre industrial park in Kisaju, represents a structural shift for the Nairobi Securities Exchange-listed corrugated carton manufacturer.

Once fully operational, the plant will increase annual production from 3,000 tonnes to 22,000 tonnes, a more than sevenfold increase, positioning SKL to serve the horticulture, floriculture and fast-moving consumer goods sectors. 

Kenya’s horticulture sector, which generated over KES 156 billion (US$1.17 billion) in export earnings in recent cycles, requires specialized, climate-controlled packaging for avocados, herbs, mangoes and cut flowers destined for European and Middle Eastern markets. 

How Kenya’s Packaging Demand and Debt-Fuelled Expansion Shape SKL’s Future

SKL’s aggressive capital expenditure is directly tied to rising demand for export-grade packaging within East Africa. 

The new facility is meant to meet growing demand from horticulture exports, as well as the FMCG sector, with the dairy, herbs, edible oils and confectionery sectors also adding to demand. 

However, the sevenfold capacity expansion has required heavy leverage in a high-interest-rate environment. By mid-2025, SKL’s long-term borrowings surged to KES 113 million (US$856,000), from just KES 3.5 million (US$26,500) a year earlier, largely facilitated through a KES 271.8 million (US$2.06 million) credit line with SBM Bank Limited. 

The debt load triggered a profit warning in September 2025, with full-year earnings expected to plunge by more than 25% due to surging finance costs.

What the NSE-Listed Packaging Pioneer’s Strategic Bet Means for the Horticulture Sector

SKL made history in July 2025 as the first packaging company to list on the NSE. 

In the financial year ending December 2024, SKL posted revenues of KES 309.9 million (US$2.35 million) with a net profit of KES 10.1 million (US$76,500), while total assets stood at KES 297.5 million (US$2.25 million). 

In the first half of 2025, net profits plummeted to KES 2 million (US$15,150), down from KES 6 million (US$45,450) during the same period in 2024, despite management tightening operating costs by 9%. 

As construction enters its final phases, SKL is preparing to hire hundreds of workers from the local community. 

Managing Director Dr. Sonvir Singh stated that once the plant is operational, the company’s revenues and profitability trajectory will strengthen significantly, despite current financial pressures.

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